The likes of Fernando and Rakitic scored for the visitors, and Real Madrid were lucky to come away with a draw thanks to a goal from Asensio and an own goal from Diego Carlos on the 93rd minute.
Los Blancos needed a win to give themselves the best chance of winning La Liga this season, and Zinedine Zidane will be disappointed with the performance of his players.
The draw tonight leaves Real Madrid second in the table level on points with Barcelona.
Lack of sharpness in the final third
Real Madrid started the game brightly, and they would have expected to score early on.
The home side dominated the possession, but they struggled to create too many chances for themselves.
The home side lacked sharpness and craft in the final third, and most of their possession in the first half was aimless switching of the ball.
Rakitic scores from spot, Zidane furious with VAR decision
In one occasion, Benzema managed to beat the Sevilla keeper with an impressive headed effort in the first half, but VAR disallowed his goal because the crosser Alvaro Odriozola was adjudged offside.
In the another occasion, Benzema was sent clean through on goal during a counter-attack during second half, and he had just the keeper to beat. The Real Madrid striker tried to go around the keeper and went down in the box.
The referee ruled against the apparent penalty after consulting VAR, as VAR adjudged the ball touching Militao’s extended arm before the build up in the Real Madrid penalty box. Referee, himself reviewed two back-to-back penalty situations at either end of the field.
After the review, Sevilla were awarded the penalty instead, and former Barca midfielder Evan Rakitic provided 2-1 lead to the visitor.
Zidane: "I'm very angry. You have to explain the rule of the hands a bit. It's very complicated, I spoke with the referee to find an explanation. It is really complicated because we deserved much more but it is what it is."
The title race – Real Madrid returned favour to Atletico and Barca
Barcelona and Atletico Madrid ended their face-off with a goal-less draw, and hence lost a couple of points yesterday. This was a golden opportunity for Real Madrid to climb to the top of the table with a win.
Instead, the Los Blancos find themselves two points adrift of the League leaders, surrendering the advantage in La Liga race. Atletico Madrid are at the top now, and Real Madrid are at second spot by virtue of head-to-head advantage against Barcelona.
It will be interesting to see if Zidane’s side can change the situation with just three games remaining in the League. They have to be dependent on their city rival’s performance now.